Stove Kraft has announced comprehensive margin expansion targets as part of its strategic growth plan. The kitchen appliances manufacturer has set specific financial objectives aimed at improving profitability over the coming years.

Current Quarter Targets

The company is targeting a gross margin of 39% for the current quarter, reflecting its focus on operational efficiency and cost optimization. This target represents a key milestone in the company's margin improvement journey.

Long-term Margin Strategy

Stove Kraft has outlined a systematic approach to margin enhancement with specific targets:

Strategic Focus Areas

The company's margin expansion strategy encompasses both gross margin and EBITDA margin improvements. The planned 1% year-on-year increase in gross margins demonstrates a commitment to sustainable profitability growth. Over a three-year period, Stove Kraft expects to achieve gross margins in the range of 41-42%.

Operational Efficiency Initiatives

Beyond gross margin improvements, the company is also targeting enhanced operational efficiency through EBITDA margin expansion. The targeted 1% year-on-year improvement in EBITDA margins indicates focus on controlling operational expenses while driving revenue growth.

These margin targets reflect Stove Kraft's strategic emphasis on profitability enhancement and operational excellence in the competitive kitchen appliances market.

Stove Kraft has announced its expectations of generating significant revenue from exports to IKEA starting in FY27. The kitchen appliances manufacturer indicated that sales to the global furniture retailer will begin in the current quarter, marking the commencement of this new business partnership.

Export Growth Strategy

The company projects overall export growth for the year, with the success of this initiative dependent on tariff conditions remaining stable. This strategic move represents Stove Kraft's efforts to diversify its revenue streams and expand its international presence through collaboration with established global brands.

Business Partnership Details

The partnership with IKEA positions Stove Kraft to tap into the international market through one of the world's largest furniture and home accessories retailers. The company's focus on export growth aligns with its strategy to reduce dependence on domestic markets and explore new revenue opportunities.

Market Outlook

Stove Kraft's optimistic outlook for export growth hinges on maintaining current tariff structures. The company's ability to secure orders from a global brand like IKEA demonstrates its manufacturing capabilities and quality standards meeting international requirements.

This development marks a significant milestone for Stove Kraft as it ventures into supplying products to international retail chains, potentially opening doors for similar partnerships with other global brands in the future.